2 Dec 2016

PNG workers in subsidised housing to face new tax

From , 4:03 pm on 2 December 2016

From the beginning of next year in Papua New Guinea workers who live in housing provided by their employers are to be taxed on the market rent rate that that house could command.

The change was announced in last month's Budget.

The Post Courier newspaper says it could mean large numbers of workers paying hundreds of kina more a week in tax, undermining their ability to save and invest, and potentially push them into squatter settlements.

It is not uncommon in other countries for such salary perks to be taxed but Don Wiseman asked the executive director of the Institute of National Affairs, Paul Barker, what impact it might have in PNG.

Melanesian countries, excluding Fiji, make up the bulk of the seven million people in the Pacific who cannot access electricity.

Melanesian countries, excluding Fiji, make up the bulk of the seven million people in the Pacific who cannot access electricity. Pictured: Port Moresby. Photo: RNZ/Johnny Blades